Loans
Loans represent the on-chain agreement between Lending Pools and Borrowers. A loan, in terms of the smart contract, consists of an application, an offer, a loan record with accepted parameters and a detail with repayment statistics.
Each loan application has the following application parameters:
Application ID
Borrower’s Ethereum Address
Amount
Duration
Application Status
Borrower Metadata Profile ID
Borrower Metadata Cryptographic Hash
Loan applications cannot be updated once created. However, loan parameters can be fine tuned during offer drafting. Loan offer has the following parameters:
Application ID
Borrower’s Ethereum Address
Amount
Duration
Grace Period for Payments
APR - annual interest rate applied to the loan amount
Instalments
Instalment Amount - minimum payment amount per instalment
Lock Timestamp - time when the offer draft was locked from further changes and made available for lender voting
Draft loan offers may be updated only before being locked for lender voting, and can only be either cancelled or presented to the borrower to accept.
Accepting a loan offer will create a loan record with payment details. A loan record will reflect the loan offer, and contain the following parameters:
Loan ID
Application ID
Borrower’s Ethereum Address
Amount
Duration
Grace Period for Payments
APR - annual interest rate applied to the loan amount
Instalments
Instalment Amount - minimum payment amount per instalment
Borrowed Timestamp
Loan Status
A borrowed loan will maintain Loan Details data with the following parameters:
Loan ID
Total Amount Repaid
Principal Amount Repaid
Interest Paid Till Timestamp
A loan can go through a number of states based on actions taken on the loan by the actors in the Lending Pool. Refer to Figure 2 below for a complete loan states flow:
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